Privacy Features and L2 Scalability

Dear Aztecs
I am new here and in the process of research and study I was interested in the following question:
How does Aztec ensure privacy without compromising L2 scalability? Could you share some insights into the trade-offs involved?

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It depends on what you mean by “without compromising L2 scalability”. In the short to medium-term, Aztec will not have comparable transaction throughput as other Ethereum L2s that are focused on scalabilbity. Aztec offers a different value proposition, namely information hiding in transactions. Devs will be able to build fundamentally new applications and user experiences with Aztec, its not just “Ethereum but faster and cheaper”.

This requires that users do additional computation on their devices, so it will generally take longer to create and send transactions to the network. The Aztec network will also be launched as a fully decentralized network. This is important for censorship resistance and liveness, but also comes at the cost of throughput. It’s easier to process a bunch of transactions on a single node/server than through a permissionless network of nodes.

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